OK so it’s not the most amazing news ever, but average life insurance premiums are on the rise. The key word in that sentence is “average”. This doesn’t mean that you have to pay more.
Whilst the premiums that companies charge might be increasing the are still increasing overall they are willing to get very competive to attract new business.
If you have term insurance coming up for renewal do not just assume that your current provider is going to give you the best deal. Use a price comaprison tool like confused.com or moneysupermarket.com. Also try out the tips and tricks on moneysavingexpert.com to see if changing some small details on your application can reduce your premium.
Unfourtunately insurance companies will regard “loyal” customers that just renew with them without question as fair game for the worst possible quotes. In effect your loyalty is being used to fund the offers that they give to new customers. It may seem unfair but you will get nowhere argiung about it - just play the game. Once you have your new shiny quote from another insurance provider you may find that your existing insurance company is much more keen to reward your “loyalty”!!
As I said at the start, this isn’t exactly amazing information, but if it stops a single person being ripped off by their insurance provider then it will be worthwhile.
Tags: life insurance premiums
If you are in dispute with an insurance company over the exact meaning of a policy document then the last resort is to take the company to court. Before doing this you will obviously need to get legal help, but the following 5 facts might help you to decide whether this is worth doing:
1. Ambiguous Clauses
An insurance policy is a contract between the insured and the insurer. A general principle of contract law is that if the terms of the contract are ambiguous then the dispute is settled against the party that created the contract (the insurance company).
2. The Expertise Used to Decide on the Meaning of the Policy
The interpretation of the policy document is considered from the point of view of a person of average intelligence, not an insurance expert or attorney.
3. Conflicting Clauses
If the policy document contains two clauses that are inconsistent then the one that gives the most protection to the insured will be considered instead of the one that gives the most protection to the insurance company.
4. Avoiding an Absurd Result
The court will not enforce either the policy as written or as interpreted if this would cause a ridiculous result.
5. Policy Endorsements
Insurance companies will often use endorsements to limit cover. If an endorsement is attached to the policy when it is purchased it then becomes part of the policy. If the policy and the endorsement are in conflict then the endorsement is considered to be correct.
Conclusion
A disagreement over the terms of an insurance policy is a serious and complicated issue. You do really need to get legal help to resolve it. Hopefully the above facts will help you understand the issues if you do seek legal advice.
Tags: Life Insurance, life insurance disputes, policy interpretation
If you are in your 20s or 30s and considering buying life insurance you might be tempted by the lower premiums that term insurance offers. Before you decide on the type of policy that is best for you consider the following 3 reasons why you might be better off with whole life.
1. Lowering Overall Cost
This might seem like a strange one, given that I said in the introduction that term premiums are lower. However if you consider the cost over your entire lifetime then whole life will often be less. This is because the premiums will often rise dramatically at the end of a term policy whereas a whole life policy with guaranteed premiums will never increase.
2. Preventing Loss of Cover
Your initial premium might be low, but if you suffer a health emergency then you may find that your premiums are increased beyond the amount that you can afford when your initial term is over. In this instance you might even find yourself denied cover or unable to afford enough to cover your families needs.
3 Building an Investment
Part of your premium will be invested, as the company managing your policy have to build up a sum to eventually pay out. In the later years of the policy this can give you some flexibility as you could convert part of it to a standard endowment (if you decide you don’t need so much cover) or borrow against its value.
Conclusion
Your choice of policy will depend on your own unique circumstances, but don’t dismiss whole life cover just because the initial premiums are higher - the decision you need to make is far more complex than that!
Tags: Life Insurance, term life insurance, whole life insurance
